Population growth has been cited as a key factor in the current Spanish housing crisis, as high demand forces prices to spiral.

Property experts have forecast a continued rise in Spain’s housing prices, driven by several key factors. Limited supply driven by continued population growth is the primary factor behind rising costs, with falling interest rates and moderate inflation also contributing.

Population growth in Spain is partly fuelled by immigration and although some newcomers are investing in luxury homes, the majority are taking up accommodation at the lower end of the market whilst filling lower-paid jobs. This dynamic is heightening demand across the bulk of the housing market, forcing prices up.

In 2024, the Spanish housing market saw a significant rise in property prices, both for sales and rental accommodation. According to data released by Idealista, the price of resale homes surged by 10.7 per cent in November, reaching €2,244/m², marking seven consecutive months of growth and resulting in the biggest price increase since 2006.

Rental prices also saw double-digit growth, rising by 11.1 per cent to an average of €13.3/m² per month.

Housing supply is a key factor in Spain’s property market, and overpopulation is currently causing a significant shortage. Economist Miguel Córdoba estimates there is a deficit of around one million homes for sale and almost half a million rental properties.

Population growth in Spain is largely driven by immigration, which can be split into two categories. Firstly, those who enter Spain to fill low-paying jobs that Spaniards are unwilling to take, and who generally rely on the rental market. Secondly, foreign nationals with the financial means to purchase properties at the higher end of the market.

Immigration is expected to keep pressure on Spanish housing prices, both for sale and for rent, and economist Miguel Córdoba predicts that prices will continue to rise.

Córdoba insists that if population growth continues, Spain must implement “initiatives for large-scale housing construction”.

At the time of writing, the population of the Spain sits at approximately 47.897 million, a 17 per cent increase since 2000.

Submitted by Friends of Retha


The Message is the ground-breaking debut novel by Yan Vana, a thought-provoking and critically acclaimed book that will change the way you think about overpopulation and the near future of earth.